Highlights

• Australasian Metals has reported high-grade gold mineralisation at the Capella Gold Project.
• The maiden drilling program has validated the historical drilling data and boosted the company’s confidence in the project.
• After a successful RC drilling campaign, the company plans to undertake a diamond drilling program at the project.

In a major update, Australasian Metals Limited (ASX:A8G) announced that the maiden RC drilling program over the Capella Gold Project in Queensland returned high-grade gold intercepts. The drilling program has confirmed the presence of gold mineralisation across the project while validating the findings of historical drilling.

The market cheered the company update on its gold exploration endeavours. During the early hours of trading, A8G shares skyrocketed by nearly 24% before settling to AU$0.245 apiece for the day on 26 July 2022.

2022 Drilling Program over Capella

The Capella Gold Project saw drilling and other exploration activities in the past, including aeromagnetic, auger soil geochemistry and IP surveys. Nearly 66 RC holes with a total depth of ~6,500m were drilled across the project area in the past.

Australasian, during its latest campaign, drilled 12 RC holes for a total depth of 1,644m. The holes intercepted high-grade gold mineralisation.

The assay results have indicated the presence of thick mineralisation controlled by the north-south striking faulting structure.

Some of the significant gold intercept results have been illustrated in the image below:

The maiden RC drilling program on Capella successfully tested and verified the earlier drilling results. The intercept results from CAR036 identified thick, high-grade mineralisation over 10m beneath the historical results.

The analysis of the historical data shows that the down dip extension of the high-grade zone could be a potential target for the future drilling program.

The latest drilling results indicate that there is close to 1km strike length of gold mineralisation waiting to be tested by the company.

A8G is investigating the control of the high-grade zones by conducting further geological studies.

Hole locations of current and historical drilling programs

(Image source: A8G update, 26 July 2022)

Way forward

With the successful completion of the RC drilling program, the company now plans to undertake a follow-up diamond drilling program to extend the high-grade shoots and extract valuable structural information.

A8G will commence reviewing data and developing a resource model for the Capella Project. The company will finalise the interpretation of the Retro Extended drilling results in a couple of weeks.